Markets Price in Expectations, Not Facts

As soon as a city announces plans to build a subway, property prices shoot up overnight. Landlords don't wait two years for the subway to open before raising rents—they definitely don't.

Prices jump significantly on the day the plan is unveiled, climbing to the level expected two years later when the line opens. This is what we mean when we say today's price already reflects expectations for two years down the line.

Will the property actually appreciate after two years? Not necessarily. It won't rise just because the subway is built—by then, the good news is already priced in, which is actually bearish.

Investors buy before the plan is announced and start listing their properties for sale as soon as it goes public. By the time the subway is complete, they've already sold. This is the classic "buy the rumor, sell the news" playbook: buying on anticipation and selling when the reality materializes.